The following is a summary of the Genasys Inc. (GNSS) Q1 2024 Earnings Call Transcript:
Financial Performance:
Genasys reported Q1 2024 revenues of $4.4 million, a 58% decrease over the previous year.
Software revenue increased by 57% to $1.4 million, with recurring software revenues rising 85% year-over-year.
Hardware revenue fell by 72% to $2.9 million.Gross profit margin was 34%, a fall of 12 percentage points from the previous year's quarter.
Operating expenses for the quarter were $8.7 million, up 5% year-over-year.
GAAP operating loss amounted to $7.2 million, with an Adjusted EBITDA of negative $6.1 million. Cash, cash equivalents, and marketable securities totalled $13.6 million as of December 31, 2023.
Business Progress:
Genasys' business has been gaining momentum, with the transition to a balanced hardware-software company well underway.
Despite lower quarterly revenues, hardware bookings matched Q1 averages, rising nearly 90% from the prior year's quarter.
Recurring software revenue grew by 85% year-over-year, contributing to the total Annual Recurring Revenue (ARR) of $5 million for Q1.
Genasys expects software revenues to at least double in fiscal 2024, with hardware revenues rebounding to nearly fiscal 2022 levels.
Expansion and growth opportunities are seen both domestically and internationally due to the growing need for protective communications globally.
More details: Genasys IR
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